Alternative Fuels

Argus Media Q&A: Methanex says future of biomethanol is in shipping

Methanex, one of the largest methanol producers, told Argus in an interview, how it sees the future of biomethanol in the shipping industry and challenges in developing the new bunker fuel.

Published

3 years ago

March 30, 2023

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Canadian firm Methanex, one of the largest methanol producers, told Argus how it sees the future of biomethanol in the shipping industry, and the challenges the development of this new fuel could face. The firm recently completed what it dubbed the first ‘net zero’ shipping voyage fuelled by biomethanol blend.

27 March 2023

What role do you think renewable methanol will play in achieving net zero emissions in the shipping industry?

Methanol has emerged as a leading alternative marine fuel as shipping companies recognise its low-carbon potential. Currently, there are more than 125 vessels operating or on order and many more projects under development for methanol newbuilds and conversions.

As most new vessels are starting to come online over the next couple of years, regulations and bunkering infrastructure are being developed in ports globally to support the transition. Because methanol is already used in over 120 ports and is handled and bunkered similarly to diesel, we expect the transition to be relatively straightforward for methanol compared with other alternative fuels.

How was the ‘net zero’ of your first biomethanol voyage counted?

During the 18-day voyage, net-zero greenhouse gas emissions on a lifecycle basis — including the production process — were achieved through the use of a fuel blend, comprised of 80pc ISCC certified bio-methanol with 20pc natural gas-based methanol.

The bio-methanol used in this voyage was produced from renewable natural gas (RNG) derived from captured methane from animal manure feedstock, which would have otherwise been emitted into the atmosphere. Instead, burning it as a fuel, which releases CO2, has a far lower warming effect than the previously captured methane, which is 25x more potent than CO2 according to the EPA. Marine gasoil (MGO) was also used as a pilot fuel, representing approximately 5pc of the fuel used.

Bureau Veritas then conducted an audit of the greenhouse gas emission calculations from the biomethanol fuel blend — plus all the other fuels — consumed during the voyage. Also, the Climate Neutral Commodity, an independent certification party validated the net-zero voyage against best practices as defined by the ISCC and issued the certification.

Do you see the demand for renewable methanol mainly coming from the shipping industry or elsewhere?

We see significant demand potential emerging in the marine sector as a large and growing number of shipping companies are ordering — or considering — methanol vessels as greenhouse gas regulations become more stringent. We are also seeing increasing interest in lower-carbon methanol for use in other fuel and chemical applications.

How does the demand for green methanol compare with green ammonia? Does green methanol have a competitive advantage, if any?

One of the unique qualities of methanol versus ammonia is that it is a liquid fuel under ambient conditions. This makes methanol easy to transport, store and bunker using standard safety procedures that are similar to the well-established procedures for diesel. Thus, the cost of methanol-fuelled vessels and land-based infrastructure to store and supply methanol is significantly lower than other alternative fuels that require pressurization or cryogenics.

Methanol also has a higher volumetric energy content than alternative fuels such as ammonia or hydrogen and requires less frequent bunkering as well as being more environmentally benign compared with other options as it dissolves in water and biodegrades rapidly.

What are your future plans for green methanol production?

While today we produce methanol from natural gas, methanol can also be made from renewable sources, such as renewable natural gas, biomass, and green hydrogen combined with recycled carbon dioxide. Because our manufacturing facilities have a lifespan of several decades, and the process to make methanol remains largely the same regardless of feedstock used, we can easily modify existing infrastructure to produce lower-carbon methanol. Methanex is currently exploring pathways to gradually decarbonise our existing plants using alternative feedstocks or renewable electricity.

In addition, pursuing staged investments allows us to adjust production based on product demand and feedstock availability. We also plan to invest an additional $1 mn in 2023 to refine the potential scope and for a Carbon Capture and Storage (CCS) investment in Geismar, Louisiana.

This year, we will also conduct a technical and economic feasibility study using green hydrogen at existing plants to produce methanol with a lower carbon intensity. If the concept proves viable, lower-carbon methanol could be produced alongside conventional methanol at some of our sites, to match the growing market needs for low-carbon methanol.

What challenges are you facing in achieving these plans?

‘The green premium’ refers to the gap between the cost to produce lower-carbon methanol and what customers are willing to pay for it. While we are seeing the gap narrow, this remains a key challenge to scaling the production of blue or green methanol.

We are currently working to develop concepts, test feasibility and liaise between customers and suppliers on this. As markets and regulations shift and government incentives evolve, we are continually working to understand what solutions our customers want, gauge their willingness to pay a premium for blue or green methanol, and facilitate the supply needed to meet demand.

By Portia Kentish

Photo credit and source: Argus Media
Published: 30 March, 2023

Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.

Published

15 hours ago

June 4, 2026

Admin

MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development.

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations.

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

Methanol

Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Following “Seaspan Yangtze”, the remaining vessels planned for retrofit under the methanol retrofit programme are “Seaspan Amazon”, “Seaspan Ganges”, “Seaspan Thames”, and “Seaspan Zambezi”.

Published

15 hours ago

June 4, 2026

Admin

Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Seaspan Corporation (Seaspan) and Hapag-Lloyd on Wednesday (3 June) announced the successful completion of the first of the five vessel conversions under their methanol retrofit programme with the delivery of Seaspan Yangtze.

From the early SAVER (Seaspan Action for Vessel Energy Reduction) programme to today’s CleanBlue initiative, Seaspan has committed over USD 230 USD million across 86 vessels, executing more than 550 efficiency and retrofit projects.

Following Seaspan Yangtze, the remaining vessels planned for retrofit under the programme are Seaspan Amazon, Seaspan Ganges, Seaspan Thames, and Seaspan Zambezi. Each retrofit is expected to reduce well-to-wake CO₂e emissions by approximately 30,000 to 50,000 metric tonnes per vessel annually when operating on low-carbon methanol, while also extending vessel lifespan and enhancing fuel flexibility.

“Decarbonisation is not just about building the fleet of tomorrow, it is also about unlocking the full potential of the fleet we have today. Retrofitting and upgrades on existing fleets play a practical, immediate, and economical role in accelerating shipping’s decarbonization journey,” said Bing Chen, Chairman, President and CEO of Seaspan.

“Project SAVER CleanBlue highlights Seaspan’s strong customer partnerships, deep technical expertise, and unique platform integrated with JV partners, such as WattSpan Maritime Technology, in executing complex and large-scale retrofit projects.”

“The successful conversion of the Seaspan Yangtze together with the planned retrofit of its four sister vessels is another important step on our ambitious path towards net-zero fleet operations by 2045,” said Silke Lehmköster, Managing Director, Fleet, Hapag-Lloyd.

“Together with Seaspan, we are demonstrating that retrofitting existing vessels for low-carbon methanol can be a practical way to reduce emissions in shipping.”

Photo credit: Seaspan
Published: 4 June, 2026

Nuclear

South Korean-led nuclear car carrier design secures LR backing

LR is working with HHI, KSOE, Hyundai Glovis, G- Marine Service and KAERI on a joint development project exploring an advanced small modular reactor (SMR) installation on a PCTC.

Published

15 hours ago

June 4, 2026

Admin

South Korean-led nuclear car carrier design secures LR backing

Classification society Lloyd’s Register (LR) on Tuesday (2 June) said it has teamed up with South Korean shipbuilding, marine services and nuclear research organisations to advance the development of a nuclear‑assisted car carrier concept.

LR is working with Hyundai Heavy Industries, Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Glovis, G- Marine Service and the Korea Atomic Energy Research Institute (KAERI) on a joint development project (JDP) exploring an advanced small modular reactor (SMR) installation on a pure car and truck carrier (PCTC).

The study focused on how a Molten Salt Reactor (MSR) could be physically and operationally integrated into a large vehicle carrier. Work examined the internal arrangement and segregation of the reactor system, shielding requirements, and the impact on cargo deck layout and vehicle capacity, alongside stability and trim implications linked to the reactor’s weight and positioning.

The partners also assessed propulsion system configuration and power delivery, as well as operational flexibility compared with conventionally fuelled PCTCs, where trade routes and port calls can be tightly constrained.

A key focus of the project has been safety. LR led hazard identification (HAZID) and preliminary risk assessment work, focusing on containment, onboard safety systems and potential operability constraints tied to nuclear technology at sea.

The partners will mark the project milestone with an Approval in Principle (AiP) granting ceremony on 2 June at the LR stand during Posidonia 2026.

Sung-Gu Park, President – North East Asia, Lloyd’s Register, said: “While nuclear propulsion is still at an early stage of development, this project shows the importance of building technical understanding now to support future progress.

“Establishing feasibility at concept stage is a valuable step forward, particularly in areas such as cargo optimisation, vessel stability and integrated safety design.”

Hong-Ryeul Ryu, CTO and Senior Executive Vice President at HD HHI, said: “With global environmental regulations becoming increasingly stringent and no definitive net-zero fuel yet available, SMR-powered ships can serve as a highly effective alternative, representing a pioneering next-generation maritime technology capable of complying with GHG emission regulations while allowing lifetime operation without refuelling, and HD HHI will remain at the forefront of sustainable maritime technology development.”

Photo credit: Lloyd’s Register
Published: 4 June, 2026